Thu, 29 Apr 2010 08:15:00 +0200

Asian markets mixed as debt concerns spread thriough the EU; Euro and Pound consolidating losses

FXstreet.com (Barcelona) - Asian markets have remained little moved on Wednesday after two negative session's and Standard and Pooor's downgrading Spain's debt rating, after having cut Greece's and Pourtugal's. In FX markets, Euro and Pound remained consolidating at lower levels.

Hong Kong's Hang Seng Index edged 0.1% down, while South Korean Kospi Index dropped 0.3%, and Chinese Shanghai Composite Index shed 0.5%. Markets in Singapore, Taiwan and Malaysia have advanced, while Japanese markets were closed for National holiday.

Markets dropped on Wednesday for the second consecutive day as the ECB and IMF discuss the solution to aid debt troubled Greece, while S&P downgraded Spain's debt rating, spreading therefore Greece's debt concerns to other Eurozone countries.

Euro and Pound consolidate at lower levels

EUR/USD went back and forth on Wednesday, attempting recovery from one year lows on European session, to find resistance at 1.3265 at US session opening, and pullback to a fresh one-year low at 1.3110 on yet another debt downgrade to a EU country. The Euro bounced up afterwards to return to levels right above 1.3200 on Asian trade.

GBP/USD decline from 1.5500 high on Monday extended lower on Wednesday, with the Pound dipping to a fresh 3-week low at 1.5125, to pick up up later and find resistance at 1.5210 at Asian session opening to pull back again, and trade at 1.5140 at Frankfurt opening times.

USD/JPY rallied sharply on Wednesday and recovery from 92.80 low on Tuesday extended to 94.31 high, right below Friday and Monday's high at 94.35, to ease during Asian trade and consolidate right below 94.00 ahead of the European opening.